As online commerce in Japan grows and consumer expectations peak, the way e-commerce brands approach delivery services has never been more critical. By navigating a blend of convenience, environmental consciousness, and economic pressures, Japanese consumers are redefining what they want from delivery. 

Recently, our sister company, Cross Marketing Inc., conducted a comprehensive “Survey on Home Delivery” across all 47 prefectures of Japan. Targeting 2,500 men and women aged 20 to 69, the survey revealed detailed insights into the current landscape of delivery services, encompassing usage patterns, preferred receiving methods, redelivery prevention strategies, common complaints, and reasons for using these services. This data is invaluable for brands looking to optimize their delivery offerings to meet the shifting demands of Japanese consumers.

The survey findings provide direct data and broader market implications for brands, including the need for convenient, flexible, and environmentally responsible delivery solutions. 

Japan’s aging population, growing e-commerce sector, and evolving post-pandemic behaviors all play a critical role in shaping these expectations. 

Changing Delivery Preferences and the Impact of Broader Trends

The survey’s findings offer a window into the complex motivations and pain points Japanese consumers experience with delivery services. Here are the key findings and insights from the study.

  • Decline in Delivery Service Usage Post-Pandemic

According to the survey, only 38% of respondents reported using a delivery service within the last three months — a notable 10-point decline since 2022. The decline in delivery usage post-pandemic suggests that Japanese consumers are shifting back toward in-person shopping, a trend mirrored in other regions as restrictions ease and physical stores reopen. During the pandemic, delivery services were a necessity, and demand spiked due to safety concerns and convenience. However, with more freedom to shop in-store, consumers may now feel less need for delivery services. Cultural factors in Japan, where shopping in person is often associated with quality assurance and customer service, could further contribute to this shift. Shoppers may be seeking the experience of direct product interaction, which e-commerce and delivery lack.

Implication for Brands: To retain customers who may now have more choices between in-person and online shopping, brands should offer additional value through delivery, such as loyalty rewards, tailored options, or enhanced convenience.

  • Preference for Convenient and Secure Receiving Methods

While delivery preferences have diversified, hand-delivery to the home remains dominant, with 79% of respondents choosing this method despite a slight decrease from previous years. When it comes to delivery preferences, it’s clear that people value security and reliability. Approximately 50% of individuals opt for mailbox deliveries, while 28% drop off their packages at designated locations. This trend highlights a growing desire for peace of mind when receiving their items.

Implication for Brands: Brands should continue prioritizing home delivery while offering flexible options, such as secure drop-offs or mailbox deliveries. This aligns with a broader trend toward tailored service experiences that meet consumers’ specific lifestyles.

  • First-Attempt Delivery Success and the Aging Population

Interestingly, the survey unveiled that first-attempt deliveries achieved an impressive 65% success rate, marking a remarkable 7-point increase from 2022. Success rates were higher among older respondents, with those in their 60s experiencing an impressive 79% rate. Japan’s growing aging population likely influences this trend, as seniors spend more time at home.

Japan’s aging population comprises around one-third of its total demographic, as reported by Japan’s Ministry of Internal Affairs and Communications (MIC). With this demographic segment increasing, seniors often have specific delivery needs, such as scheduled delivery times and easy-to-access drop-off locations.

Implication for Brands: Catering to older consumers by providing time-specific deliveries or easy-access delivery options can strengthen customer loyalty among this growing demographic. Clear communication and reliable, first-time delivery can also help brands effectively meet the needs of these customers.

  • Preventing Redelivery through Advanced Notification Systems

The survey found consumers prefer preventive measures to avoid redelivery, with four in ten favoring advance notifications and 37% opting for designated drop-off points if unavailable. Younger respondents in their 20s also preferred “unavailable times” over specific delivery times, indicating a need for flexibility.

Implication for Brands: Incorporating technology to support real-time updates, predictive delivery times, and flexible scheduling could cater to these preferences and reduce the frequency of redelivery.

  • Cost-Sensitivity and Demand for Affordable Delivery Options

In terms of motivations, half the respondents cited online affordability as a key reason for choosing delivery services, with 41% prioritizing free or low-cost shipping. Economic pressures may drive this cost sensitivity as Japanese consumers become increasingly selective.

According to the Ministry of Economy, Trade and Industry (METI), Japan’s e-commerce sector has grown 6% over the past two years, leading to higher expectations for efficient and cost-effective delivery options. This trend reflects consumer demand for affordable, reliable online shopping.

Implication for Brands: Brands should consider offering free shipping thresholds, bundled shipping discounts, or subscription models to meet cost-conscious consumer expectations. Clear communication around shipping fees can also build trust and reduce the likelihood of abandoned carts.

  • Sustainability Concerns and Consumer Expectations for Eco-Friendly Practices

Complaints about excessive packaging show that sustainability is crucial for Japanese consumers. Many respondents expressed frustration with oversized packaging and issues related to waste and environmental impact.

Implication for Brands: Implementing eco-friendly packaging solutions and minimalistic designs that reduce waste can appeal to the environmentally-conscious Japanese consumer. Highlighting these efforts in marketing communications can strengthen brand reputation and increase appeal.

Case Study: Yamato Transport – Flexible Delivery and Redelivery Reduction

Image Source: Channel X

Approach

Yamato Transport, one of Japan’s largest logistics companies, introduced the “Kuroneko Members” service, enabling customers to customize delivery times, select drop-off locations, and access open lockers. This level of flexibility aligns closely with consumer preferences for convenience and transparency.

Sustainability Initiatives

Yamato has also committed to eco-friendly measures by reducing packaging materials and increasing reusable packaging options, directly addressing environmental concerns and consumer expectations.

Outcomes

The flexibility of the “Kuroneko Members” service has been well-received, reducing redelivery rates and increasing customer satisfaction. Yamato’s annual reports indicate that these innovations have also contributed to a more efficient operational model, reducing logistical strain and enhancing customer loyalty.

Strategic Recommendations for Optimizing Delivery Services

Here are actionable strategies for brands seeking to align their delivery services with evolving consumer demands.

  • Embrace Flexibility and Real-Time Communication

Implementing flexible delivery options, such as selectable time slots and drop-off locations, can enhance convenience. Real-time tracking and notifications are essential for transparency and meeting consumer expectations.

Example: Brands can follow Yamato’s model of providing customizable delivery windows and tracking updates, allowing customers to manage deliveries easily.

  • Offer Affordable Delivery through Subscription Models

For cost-sensitive consumers, consider subscription models, bulk shipping discounts, or free shipping thresholds. These options not only increase affordability but also encourage larger purchases.

Example: ZOZO’s loyalty programs and cost-saving measures attract repeat customers, providing an affordable yet reliable delivery experience.

  • Adopt Sustainable Packaging and Logistics

Reduce waste and enhance brand perception by adopting minimal packaging and eco-friendly materials. Promoting these efforts to consumers can improve brand reputation.

Example: Using recyclable packaging, ZOZO aligns with sustainability values, resonating with consumers who prioritize eco-friendly practices.

  • Tailor Delivery Services for an Aging Population

As Japan’s population ages, delivery solutions that cater to older adults are crucial. Time-specific deliveries and secure drop-offs can improve accessibility and satisfaction for senior consumers.

Example: Sagawa Express’s focus on rural and senior-friendly deliveries provides a model for brands aiming to effectively serve Japan’s older demographic.

  • Leverage Feedback for Continuous Improvement

Implement post-delivery feedback mechanisms to capture consumer insights and refine delivery strategies. This approach allows for data-driven improvements.

Example: Brands can adopt feedback systems similar to Yamato’s, enabling adjustments based on real-time consumer needs.

Case Study: ZOZO – Eco-Friendly and Customized Delivery

Image Source: Janbox

Approach

ZOZO, Japan’s leading online fashion retailer, has integrated flexibility and sustainability into its logistics. ZOZO, Inc. operates online shopping sites. The Company sells apparel, garment accessories, bags, tableware, magazines, and other products. Customers can choose specific delivery times and receive pre-delivery notifications to fit their schedules, aligning with consumer preferences for convenience and transparency.

Sustainability Focus

ZOZO has prioritized eco-friendly practices by minimizing packaging waste and utilizing recyclable materials. This appeals to Japan’s environmentally conscious consumers and sets a standard for sustainable delivery practices in the industry.

Outcomes

This approach has enhanced customer loyalty and satisfaction, as reflected in positive consumer feedback. ZOZO’s sustainability reports highlight these efforts, demonstrating the brand’s commitment to customer experience and environmental responsibility.

Case Study: Sagawa Express – Rural Outreach and Last-Mile Solutions

Image Source: Sagawa

Approach:

Sagawa Express acts as the sender for the packages entrusted to it by customers. They deliver these packages to the post office, where they are dispatched to destinations in over 120 countries and regions worldwide through the EMS (Express Mail Service) delivery network.

Sagawa Express has focused on improving delivery services for rural and remote areas, where logistics can be challenging. Sagawa has enhanced last-mile delivery by investing in partnerships with local providers, making it more accessible for Japan’s rural residents, particularly the aging population.

Results

Sagawa’s efforts to support rural and senior-friendly delivery solutions have been met with positive feedback. By improving access to delivery in these areas, Sagawa has strengthened its customer satisfaction and reduced service complaints in less accessible regions, as documented in their annual reports.

Embracing Consumer-Centric Delivery for Long-Term Success

Our survey underscores the need for Japanese brands to adapt to evolving consumer expectations around flexibility, sustainability, and cost-efficiency. By aligning with these expectations, brands can enhance customer satisfaction, operational efficiency, and long-term market competitiveness. 

Interested in uncovering more consumer insights to refine your brand’s strategy? Contact us for customized market research to help your brand stay ahead of the curve, better understand consumer preferences, and create impactful solutions that resonate with your target audience.

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The ecommerce industry, a cornerstone of modern retail, is entering a new phase of transformation. As technology evolves and consumer behavior shifts, businesses are under increasing pressure to adapt quickly and stay competitive. With the rise of AI, social commerce, faster logistics, and the push for sustainability, the ecommerce landscape is rapidly changing. Companies must innovate to meet the growing demands of consumers who now expect faster, more personalized, and environmentally conscious shopping experiences.

In this blog, we will explore the four key trends expected to redefine ecommerce in 2025: AI-driven shopping experiences, the expansion of social commerce, logistics innovations, and the focus on sustainable ecommerce. Each of these trends presents new opportunities and challenges that will reshape how businesses operate and engage with customers in the years ahead.

Trend 1: AI-Driven Shopping Experiences

Artificial intelligence is transforming the way consumers shop online, creating highly intuitive and personalized shopping journeys. From product recommendations based on past purchases to virtual shopping assistants that guide customers through their buying process, AI is playing an increasingly central role in enhancing the ecommerce experience. As technology continues to advance, AI is set to become integral to driving customer engagement and boosting conversion rates.

AI allows brands to deliver tailored experiences that increase customer satisfaction by offering personalized product suggestions, content, and promotions. This level of customization fosters stronger customer loyalty and enhances the overall shopping experience. On the operational side, AI enhances efficiency by automating inventory management and demand forecasting, ensuring that products are in stock and ready to meet consumer needs.

In addition, AI-driven solutions can predict consumer behavior and anticipate their needs, which leads to higher conversion rates. 

By analyzing data from browsing patterns, previous purchases, and even social media activity, AI can help businesses address specific consumer needs at the right moment, optimizing the path to purchase. As AI technology continues to evolve, it will only become more integral to the ecommerce landscape, helping brands stay competitive in a rapidly changing market.

Case Study: Carrefour – Leveraging AI for Enhanced Customer Interactions

Carrefour, one of France’s largest retail chains, has successfully integrated AI-powered chatbots and generative AI into its operations to elevate its customers’ shopping experience. The brand’s AI assistant, Hopla, helps customers find products, answer queries, and provide personalized recommendations, improving the overall shopping experience.

By utilizing AI to handle routine customer inquiries, Carrefour enhances the customer service process and streamlines internal operations, freeing up employees to focus on more complex tasks. Hopla’s use of natural language processing and AI-driven algorithms allows it to assist customers in real time, guiding them through product searches and even assisting with checkout. This integration of AI into both customer-facing and internal processes highlights Carrefour’s commitment to leveraging technology to improve efficiency and customer satisfaction.

This case study is an excellent example of how AI can enhance the customer journey and operational efficiency, making it a perfect illustration of AI-driven shopping experiences.

Trend 2: The Expansion of Social Commerce

Social media platforms are increasingly doubling down on their ecommerce capabilities, transforming how consumers discover and purchase products. With seamless integration of shopping features into social feeds, users can now shop directly from posts, stories, and livestreams, blurring the lines between content consumption and shopping. Livestream shopping and shoppable posts are becoming dominant in social commerce, turning these platforms into powerful sales channels.

This shift changes the way consumers interact with brands, making shopping more immersive and engaging. By combining entertainment with purchasing, platforms like Instagram, TikTok, and Facebook are creating a dynamic shopping experience that encourages impulse buying and fosters deeper consumer-brand connections. As a result, marketing budgets are being redirected toward influencer-driven campaigns and interactive content formats that engage users in real-time.

This expansion of social commerce forces brands to rethink their customer acquisition and engagement strategies. Traditional advertising is no longer enough—brands must now focus on creating compelling, shareable content that fits seamlessly into the social media experience. The rise of micro and nano influencers, who have more engaged, niche followings, further emphasizes the importance of building authentic relationships with consumers.

As social commerce continues to grow, it will redefine the consumer journey, making social media platforms central hubs for discovery, engagement, and shopping. Brands that effectively leverage this trend will be well-positioned to capture the attention of today’s digital-first consumers.

Case Study: Pinduoduo – Transforming Social Commerce through Instant Messaging

Pinduoduo, a leading Chinese e-commerce platform, has revolutionized social commerce by enabling users to make everyday purchases directly through instant messaging platforms. By integrating shopping into social interactions, Pinduoduo has created a seamless and engaging shopping experience that encourages users to interact, share, and purchase products all within a single platform.

This innovative model has attracted a vast user base, especially in China’s lower-tier cities, where it has become a dominant force in the e-commerce space. Pinduoduo’s integration of social elements with e-commerce not only fosters a sense of community but also encourages group buying, where users can share deals with friends and family to access discounts. This approach has proven highly effective, as it taps into the power of social interactions to drive consumer purchases, demonstrating the growing importance of social commerce in today’s digital economy.

Pinduoduo’s success illustrates the future of social commerce, where social platforms and shopping experiences are increasingly intertwined, creating new opportunities for brands to reach consumers and engage them in innovative ways.

Trend 3: Logistics Innovations and Quick Commerce

Speed and convenience have become non-negotiable for today’s consumers, significantly influencing the way e-commerce operates. To meet these expectations, innovations in logistics, such as drone deliveries, dark stores, and micro-fulfillment centers, are reshaping the delivery landscape. These advancements are enabling ultra-fast delivery times, providing the speed and efficiency that customers now demand.

With the rise of quick commerce, consumers expect their orders to arrive not only quickly but also at a lower cost. To keep up with this demand, e-commerce companies are investing heavily in logistics infrastructure and advanced technologies. Automated warehouses, AI-powered delivery routing systems, and drones are just a few examples of the tools being used to streamline operations and speed up delivery times. This requires significant capital and resources, pushing larger retailers to invest in cutting-edge solutions to stay competitive.

Interestingly, these innovations are leveling the playing field for smaller players in the market. Many small and medium-sized businesses are adopting third-party logistics (3PL) solutions to access these advanced capabilities without the hefty infrastructure investment. This democratization of logistics allows smaller retailers to compete with larger companies in terms of delivery speed and efficiency, further driving competition in the e-commerce space.

As logistics technologies continue to evolve, the expectation for faster deliveries will only increase. Retailers that invest in these innovations will be well-positioned to meet consumer demands and thrive in the increasingly competitive e-commerce environment.

Case Study: Flipkart  – Revolutionizing Delivery with Sustainable Logistics

Flipkart, a leading Indian e-commerce platform, is enhancing its delivery capabilities by integrating 25 liquefied natural gas (LNG) trucks into its logistics network. This initiative is part of the company’s broader strategy to reduce carbon emissions and improve delivery efficiency across India.

By adopting LNG trucks, Flipkart is taking significant steps towards a more sustainable logistics model, as LNG is a cleaner alternative to traditional diesel fuel, resulting in lower greenhouse gas emissions. This shift not only supports Flipkart’s commitment to sustainability but also improves delivery speeds, enabling the company to meet the increasing demand for fast, efficient service in a competitive market.

Flipkart’s investment in eco-friendly logistics demonstrates how e-commerce giants can innovate to address both environmental concerns and the growing consumer demand for faster, more reliable deliveries. This case study highlights the importance of sustainability in logistics, setting a benchmark for other companies looking to integrate greener practices into their supply chain operations.

Trend 4: Focus on Sustainable Ecommerce

Sustainability is becoming a top priority in ecommerce as both consumers and regulators demand greener practices. From eco-friendly packaging to carbon-neutral shipping options, brands are being pressured to adopt more sustainable operations. Beyond packaging, companies are also exploring second-hand marketplaces and product take-back programs to extend the life of products and reduce waste.

This focus on sustainable ecommerce will disrupt the industry in several ways. First, it forces brands to rethink their entire supply chain and packaging strategies, ensuring that every aspect of the process is aligned with environmental responsibility. Brands that demonstrate genuine commitment to sustainability will not only meet regulatory requirements but also increase consumer loyalty, as today’s shoppers are increasingly making choices based on ethical practices. However, there’s a fine balance between sustainability and cost efficiency. 

Companies must innovate to deliver on both fronts, without driving up prices or reducing operational efficiency. As the pressure for greener practices grows, the ecommerce landscape will continue to evolve toward more sustainable solutions, reshaping the way businesses operate.

Case Study: H&M Group’s Commitment to Sustainable Sourcing

H&M Group, a leading fashion retailer based in Sweden, has made significant strides in integrating sustainability into its operations. As of 2023, the company reported that 85% of its materials were recycled or sustainably sourced, aiming for 100% by 2030.

This commitment is part of H&M Group’s broader strategy to reduce its environmental impact and promote a circular economy.

In addition to sustainable sourcing, H&M Group has implemented several initiatives to enhance its sustainability efforts:

  • Sustainable Impact Partnership Program (SIPP): This program assesses supplier compliance with the company’s sustainability standards, ensuring that partners adhere to ethical and environmental guidelines.
  • H&M Foundation: Established in 2014, the H&M Foundation funds projects aimed at creating a socially inclusive and planet-positive textile industry. The foundation has invested over SEK 1.7 billion since its inception.

H&M Group’s dedication to sustainable sourcing and its comprehensive initiatives demonstrate a proactive approach to addressing environmental challenges within the fashion industry.

Final Thoughts

The trends shaping the future of e-commerce—AI-driven shopping experiences, the expansion of social commerce, logistics innovations, and the focus on sustainability—are not just altering how businesses engage with customers but setting new benchmarks for success in the industry. As these trends continue to evolve, they will define the future of retail, demanding greater agility and innovation from businesses aiming to stay competitive.

Adaptability is key to thriving in this fast-paced environment. Companies that invest in cutting-edge technologies, embrace new consumer behaviors, and prioritize sustainability will be best positioned to capitalize on the opportunities presented by these disruptions.

For more insights into the latest trends and strategies shaping the future of the e-commerce industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.

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